Couple needs $750,000 nest egg

AN Australian couple planning to live 25 years after retirement need a nest egg of almost $750,000 tucked wisely away, according to the Association of Superannuation Funds of Australia.

Statistics put out by the association suggest a single person needs an annual income of $37,822 and a couple needs $50,771 to live comfortably in retirement.

According to the Colonial First State superannuation fund, to achieve that a single person would need $569,779 to last 25 years and a couple would need $764,852.

To last 15 years, a single person would need $413,559 and a couple $555,148. The calculations assumed the savings were earning 7.7 per cent a year after fees and taxes with inflation at three per cent.

According to the Australian Bureau of Statistics almost 40 per cent of Australians over 45 do not know at what age they will retire, while more than half expect their main income in retirement to be superannuation or an annuity.

Figures released by the bureau show that in 2008-09, Australia had 3.4 million people aged 45 years and over in the labour force who indicated that they intended to retire from the labour force in the future.

Of these, 53 percent reported their main source of personal income at retirement would be “superannuation or annuity”.

It was also found that of this 3.4 million, 38 per cent did not know the age at which they would retire. Of the others 46 per cent intended to retire between 65 and 69.